Knowledge Nugget: Why are BRICS and New Development Bank important for UPSC exam?

BRICS and the New Development Bank: Significance for UPSC

This article details the importance of the BRICS group and the New Development Bank (NDB) for the UPSC exam. It notes that the UPSC has previously asked questions about both topics, including the Fortaleza Declaration and the NDB initiative. Therefore, understanding the group is vital for exam success.

Key Takeaways on BRICS

• BRICS initially comprised Brazil, Russia, India, China, and South Africa – large, non-Western economies.
• Indonesia's recent inclusion expanded membership.
• The group's formation stemmed from criticisms of Western dominance in international forums and the desire for increased representation from developing nations.
• BRICS aims for political and economic cooperation, with the NDB supporting development projects.

Donald Trump's statements regarding the group's future are also mentioned in the article.

The New Development Bank (NDB)

• Established by BRICS nations.
• It has a substantial authorized capital.
• India's contribution to the NDB is highlighted.
• The bank aims to reduce reliance on the US dollar and promote alternative financial systems.

The article concludes by noting attempts to reduce dependence on the US dollar, the NDB's role in promoting efficiency, and the impact of sanctions on global financial systems.